A few days ago, a friend asked, “Buffett’s cash reserves have hit an all-time high—what is he seeing?” Interestingly, I held the same view two years ago. 1. First, the increase in Berkshire Hathaway’s cash over the past two years has come primarily from reducing its Apple position. By the end of 2024, he had cumulatively sold 600 million shares of Apple, and including sales in 2025, Buffett has now reduced his Apple stake by nearly 700 million shares. Why sell? From his perspective, Apple likely became overvalued—after building the position starting in 2016, the stock had risen five to sixfold. It was a reasonable time to take profits. 2. In the short term, he also didn’t see compelling opportunities. Last year, the tariff wars presented a potential opening, yet he didn’t act. He didn’t buy Google at $160, but in Q3 2025, he initiated a position in Google at $230. Of course, a few billion dollars in position size is negligible for him—more like a “flyweight” stake. 3. Looking back over the past two decades, Buffett’s cash holdings have repeatedly hit record highs—this doesn’t necessarily mean he’s seeing something specific; it may simply reflect his conservative approach. Remember, beyond investing, Berkshire Hathaway’s six core operating businesses generate tens of billions of dollars in cash flow annually. His scale means he builds and reduces positions gradually. For ordinary investors, even if we put money into U.S. stocks—not just big tech but even mid-cap growth names—the liquidity depth is so limited that our trades might barely make a ripple; there’s no real concern about being unable to exit. The real question is: if real risk emerges, do you have the conviction to walk away? Buffett’s personality and investment style naturally lead him to be exceptionally prudent. Even before selling Apple, he consistently maintained a cash position of at least 30% or more. So if something significant does happen in the future, it won’t be because he “saw it coming”—it will be because his discipline and patience allowed him to wait for it.